What is the yield to call of the bond

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1. A 6.45 percent coupon bond with 29 years left to maturity can be called in nine years. The call premium is one year of coupon payments. It is offered for sale at $1,116.75. What is the yield to call of the bond? (Assume interest payments are semiannual.)

2. How to do on financial caculator: A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8%, and $648,200 in next year’s free cash flow. What value would you place on a share of this firm's stock if you require a 14% rate of return?

Reference no: EM132005862

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